Notes to SEFA
Accounting Policies: 1.Basis of PresentationThe accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Monarch under the programs of the federal government for the year ended June 30, 2022. The information in the SEFA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of Monarch, it is not intended to and does not present the financial position, statement of operations and change in net assets, functional expenses, or cash flows of Monarch.2.Summary of Significant Accounting PoliciesExpenditures reported in the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.